Calif. Utilities Budget for Climate Change

Calif. Utilities Budget for Climate Change

Dec 23 - United Press International

The California Public Utilities Commission now requires the cost of addressing global warming in the future be accounted for in current utility budgets.

The commission has mandated that utilities attach an amount to bids for power generated by fossil fuels. The add-on is meant to help offset future financial risks posed by carbon-based fuel sources.

Under the rules, cleaner sources are considered more cost-effective if they prevent carbon emissions at a cost of less than $8 to 25 per ton, said the Union of Concerned Scientists, which pushed for the change.

The Commission set the requirements when it voted Dec. 16 to approve the 10-year resource plans of the state's three largest utilities.

Since there are many energy efficiency and renewable energy options available today that are less expensive than new fossil fuel plants, we don't actually expect any increase in rates as a result of this policy, said John Galloway, senior energy analyst with the Union of Concerned Scientists in Berkeley, Calif.

But energy efficiency and renewable energy will become clear priorities, he added.

For far more extensive news on the energy/power visit: http://www.energycentral.com .